Algorithm Trading : The Future Is Here!
Dalal Street Investment Journal|March 30, 2020
Algorithm trading is dominating market volumes like never before and investors ought to understand what it means to their portfolio. Karan Bhojwani explains the basics of algorithm trading while highlighting the different algorithm strategies
Karan Bhojwani
Algorithm Trading : The Future Is Here!

Trading or investing in equity markets or any other markets is all about competing with the other market participants. The underlying objective is to have an edge over others. Algorithm trading is one such advantage or edge that seems to be influencing the fortunes of various tech-savvy market participants. However, there are many individual investors who are totally unaware of such a unique advantage. “I have been participating in equity markets for over two decades now. I am basically a long-term investor and I use my understanding of company fundamentals and financials for decision-making when it comes to identifying quality stocks and constructing a portfolio,” says company secretary and chartered accountant Sachin Chandanshiv.

“I have never felt any need for algorithm or any algorithm trading strategy so far. In fact, I do not know what is algorithm trading and I do not know how to use it. I am aware of its popularity and I do feel the need to understand it not because I want to indulge in algorithm trading but because it has started influencing the profitability of traders. I think it is of prime importance that I take a deeper look into the mechanics of algorithm trading. If I am comfortable I may use an algorithm in the future,” he adds.

What is Algorithm Trading?

This story is from the March 30, 2020 edition of Dalal Street Investment Journal.

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This story is from the March 30, 2020 edition of Dalal Street Investment Journal.

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